Cortez Brokenbrough, of New Castle, a recruiter for Brandywine Technology, says for some candidates, health benefits are more important than salary. / Suchat Pederson/The News Journal

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Don Fulton, left, managing partner at George J. Weiner Associates, says plenty of lawmakers in Washington don't understand the new programs, and it will take awhile for businesses to sort out what to do. / SUCHAT PEDERSON/THE NEWS JOURNAL

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Cortez Brockenbrough, of New Castle, is sifting through his own options when it comes to health insurance. He’s in the middle class, he says, and that income level always seems to take it on the chin.

But the recruiter for Brandywine Technology has another reason for scrutinizing health care options. Business owners have to think hard about what they will offer employees, he says – especially if they want to attract and retain the best.

“A lot of candidates are looking at benefits as a major part of their decision-making process now,” Brockenbrough said. “I think for some it’s even more important than salary.”

Don Fulton, managing partner at George G. Weiner Associates, is an expert in insurance and serves on many nonprofit boards, as well as with the Delaware State Chamber of Commerce. His firm consults with 600 corporate clients on benefits, he said.

Many business owners have the same concerns as individuals: What will the costs be? What is changing? Which plan should we offer our employees? What does the law require? Can we meet budget and still provide the appropriate amount of health insurance?

Plenty of lawmakers in Washington don’t understand the new programs, Fulton said. And it will take awhile for businesses to sort out what to do.

'A rough road'

“It’s going to be a rough road for at least another year,” Fulton said shortly after the Delaware State Chamber of Commerce awarded him the Marvin S. Gilman Bowl Wednesday for outstanding contributions to small business and nonprofits.

With about 15 employees, Weiner Associates will not face the federal mandate to provide insurance that larger employers will have starting in 2015.

But Weiner already exceeds the minimum requirements for coverage under the Affordable Care Act, he said, and will continue to do so.

Some small businesses are exploring the Delaware Employee Benefits Exchange, a privately owned effort promoted by the state chamber that offers a menu of benefit plans for companies with part-time and full-time employees.

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That system includes many insurance providers, offers online enrollment, gives employees the ability to customize their coverage and provides a predictable cost for employers.

It will help many companies navigate the challenges presented by the new law, said Carol Gabel, executive vice president of the state chamber.

“There’s still a state of confusion and a little bit of paralysis because of what has happened with the federal exchange,” she said. “The glitches they’re having trickles down somewhat to the small business community.”

Delaware is unique

The private exchange is working well, she said, but business owners have to get up to speed on the health care law and what it will require of them if they want to retain good employees.

Independent brokers can assist business owners. Many large employers are self-insured.

The private Delaware Employee Benefits Exchange allows employers to contribute toward an employee’s health care, without defining what kind of care that would be. The employee can use that money to buy the best plan for his or her family.

Some fear that contribution would make some employees ineligible for subsidies, but benefit contributions would not be considered additional income, according to Jennifer Wilson, who works for the new Benefit Exchange, because they are reserved for one purpose – health care.

The money also could help younger employees – those without significant health problems – build a health savings account that would roll over each year and help them pay for future medical expenses, she said.

Business owners will explore new ways to offer insurance, Wilson said, and will monitor closely the hours and staffing levels of their companies in the next year to see what they can change.

The bottom line

Part of the calculation will be how new costs affect the business’ bottom line.

But also in the equation will be a determination of whether an employee might qualify for a subsidized health plan if he or she did not exceed certain income levels – whether that income is controlled by hours worked or pay grade.

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“This is a test year,” Gabel said. “People will test the waters to see what they can and can’t do.”

Gabel compared the shift in how insurance is offered and purchased to changes in the travel industry.

It used to be that travel agents were a routine stop for those who needed to get airplane tickets or hotel reservations, she said. Now people can go online and make their own arrangements without just accepting what is assigned to them.

“Now you can pick your seat on the plane,” she said.

In the same way, employees could shape their health insurance to meet their family’s specific needs if employers give them that option.

The Delaware Employee Benefit Exchange will analyze a business and offer solutions, she said.

With the new year fast approaching, many are starting to ask what their options are. And, Wilson said, insurance brokers will join CPAs and attorneys on the list of crucial advisers for business owners.

“Disaster comes in when you’re ignorant and have your head in the sand and think it’s going to go away,” Gabel said. “It’s a law. It isn’t going away any time soon.”